The Bank of Japan is likely to raise interest rates next week barring any market shocks when U.S. President-elect Donald Trump takes office, and maintain a pledge to keep pushing up borrowing costs if the economy continues to recover,

SINGAPORE--The yen was poised on Friday for its strongest weekly performance in over a month as expectations grow that the Bank of Japan will raise rates next week, putting the dollar on the back foot ahead of Donald Trump’s return to the White House.

BOJ Gov. Kazuo Ueda reinforced his deputy’s message this week that his board will consider a rate hike at the meeting, boosting the yen and expectations for action.

The remarks come ahead of the BOJ's two-day policy meeting concluding on Jan. 24, when some analysts expect the bank to raise short-term rates from the current 0.25%. The board will also issue fresh quarterly growth and price forecasts that serve as the basis for setting monetary policy.